HD Hyundai Heavy Industries (329180.KS) has appealed after a court rejected its injunction request seeking to block the Defense Acquisition Program Administration (DAPA) from extending a security penalty.
According to industry sources Monday, HD Hyundai Heavy Industries submitted an appeal against the injunction rejection to the Seoul Central District Court the previous day. HD Hyundai Heavy Industries had filed the injunction request in protest after DAPA extended the security penalty measure by one year through December this year, but the court rejected it on the 5th of this month.
As a result, HD Hyundai Heavy Industries was assigned a 1.2-point security penalty in the proposal evaluation for the Korean-type next-generation destroyer (KDDX) detailed design and lead ship construction project, which concluded the previous day. The security penalty became the decisive factor determining the final outcome. HD Hyundai Heavy Industries led by about 0.6 points in technical scores, but lost to Hanwha Ocean (042660.KS) by a margin of about 0.6 points due to the penalty.
If HD Hyundai Heavy Industries' appeal is accepted, it is expected to act as a major variable in the direction of the KDDX project. DAPA plans to select a preferred bidder as early as early next month after follow-up procedures such as objections, and to sign a contract by early August.
